If you are interesting in a full and final settlement call our dedicated Settlement team on 0161 837 4760 or email settlements@moneyplus.com.

What is a full & final settlement offer?

A ‘full and final settlement’ is an offer of partial repayment to your creditors in the form of a one-off lump sum payment, in return the creditor ‘writes off’ the remainder of your debt.

There are two different types of settlement which get placed together under the ‘full and final’ header.

Full and final settlement vs partial settlements

Although similar, there are some differences between full and final and partial settlements:

  • A full and final settlement is when the debt is recorded as ‘satisfied’ on your credit report, and the remaining debt is written off.
  • A partial settlement is when a debt is recorded as ‘partially settled’, your credit report will show the remaining amount but you will not be chased for payment.
Is a full and final a realistic option for me?

In order for a full and final settlement to be realistic, you need to have a lump sum of money. This may result from selling an asset such as a property or vehicle, receiving an inheritance, or a gift from family or friends. You are not allowed to take out an unsecured loan for a full and final settlement.

Creditors are likely to accept an offer for a full and final settlement if it’s the best possible return they are likely to receive. For example, if the creditor were to make you bankrupt instead, a large percentage of the lump sum would be swallowed up in legal fees.

  • you will pay less if accepted
  • pay your debts off sooner
  • debts will be marked as ‘satisfied’ on your credit report
  • it’s a better option for your creditors than some other solutions
  • There is no guarantee that it will be accepted
  • You will need access to a lump sum of money
  • Once your creditors know you have a lump sum of money, they may chase you for full repayment of the debt
Can I make a full and final settlement offer if I am in an IVA or debt management plan?

Yes. We can act on your behalf to negotiate the best deal for a full and final settlement offer, whether or not you are currently in an IVA or debt management plan. Just let us know if you have a lump sum, and we’ll do the rest.

If a full and final is accepted by your creditors when you are in an IVA, your debts are cleared immediately rather than over the remaining time of your IVA agreement.

If you are interested in a full and final settlement call our dedicated Settlement team on 0161 837 4000 or email settlements@moneyplus.com.

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The Money Advice Service

To find out more about managing your debt and receiving free debt advice visit moneyadviceservice.org.uk or read the article Options for Paying off your Debt.

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